What used luxury car should I buy?

Used luxury: we pit the BMW 3-Series against the Lexus IS250 and Mercedes-Benz C-Class.

October 24 2012

Cameron McGavin

Lexus IS250.

The dilemma

Vildan's father is looking to make the move from his 2006 Holden Berlina into a compact prestige sedan. He's weighing up used examples of Audi's A4, BMW's 320i, Lexus's IS250 and Mercedes-Benz's C180K/C200K twins but doesn't know which way to turn.

The budget

$25,000 to $30,000.

The shortlist

The A4, 3-Series, IS and C-Class can all be considered among the very best compact prestige sedans of this price and vintage, so Vildan's dad is on the right track.

Other potential candidates ultimately don't offer sufficient incentive to look beyond this classy foursome. Semi-prestige European cars such as Volkswagen's Passat deliver more space, power and toys for similar money but lack the badge and driving appeal to be truly desirable to most compact-prestige buyers. It's a similar story for the many great near-new Japanese mid-sizers available in this budget range.

Still, while we won't draft in new players to this contest we will have to leave one at the station. That dubious honour goes to the A4, which is worthy but – unlike the value-packed, more dependable Lexus – doesn't really have a point of difference to put it ahead of its two German rivals.

2005-12 BMW 3-Series sedan, from $17,100*

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The 3-Series has long been the driver's choice of its segment and the recently discontinued E90 model continued the good times with impeccably balanced handling.

It also fronted up with competitive space and strong safety, while 320i Executives with the optional Innovations Package (introduced in 2007) get a generous serve of toys that includes sat nav and a USB interface for the stereo.

The 320i, though, while flexible and thrifty, wasn't a stirring performer, making the syrupy six-pot 323i or punchy 320d diesel (both introduced in 2006) preferable at the lower end of the range. Either way you can expect a crude ride, polarising styling and – before it was simplified in a 2009 update – a less than user-friendly iteration of BMW's iDrive control system.

The first-generation IS was Japan's first credible compact-prestige challenger and the current model gives buyers plenty of reason to eschew traditional options.

It's a smart looker with a quality cabin and toys such as heated/cooled leather seats even in base Prestige form, while Sports and Sports Luxury variants get sat nav, a reversing camera, active cruise control and other stuff you'll be lucky to find on used German rivals with similar price tags. That's part of the reason it was voted best luxury car under $60,000 in the 2006 Drive Car of the Year awards.

The Lexus also touts superior quality/reliability prospects to European alternatives and cheaper servicing as well. But it has a cramped rear seat, isn't as engaging to drive as a 3-Series and, in Sports and Sports Luxury form, has a too-firm ride.

Vildan's dad might just be able to squeeze into a current C-Class (introduced in 2007) but most in his price bracket will be its predecessors.

That means core architecture that dates back to 2000, an unremarkable back seat and – in lower level C180K and C200K form – supercharged four-cylinder petrol engines that are flexible but far from exciting.

But the model still looks good and has solid safety credentials, while post-2004 update models brought more agile handling without hurting its strong pampering qualities. In 2006 the previously optional Sport package became mandatory, bringing sharper handling and more visual tinsel.

The 3-Series is the only choice for the keen driver but its ride issues and less than user-friendly cabin mean it's not so happy in relaxed urban driving and, thus, not that well suited to buyers with a more mature mindset.

No, in this battle the C-Class stands out as the pick of the Germans, offering a more pampering, more relaxed and perfectly rounded luxury experience that helps to balance out its older design and underwhelming engines.

In the end, though, it's hard not to feel that the Lexus – which runs the Germans mighty close in most key departments while being better equipped, more reliable and more affordable to run – has a mix of talents that makes it perfect for this scenario. You may just have to learn to live with the odd complaint from back-seat passengers.

*Values are estimates provided by Glass's Guide for private sale based on an entry-level model averaging up to 20,000 kilometres per annum and in a well-maintained condition relevant to its age.